Introduction to Business Chapter 11 Government in Our

Economy

Essential Question: How does the government regulate our economy and

provide structure for businesses to create commerce?

Objectives:

1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment.

1.2.2 Business Law–describe the sources of law, the structure of the court systems and ways in which these laws apply to basic consumer and business transactions.

1.2.8 Interrelationships of Business Operations–discuss the interrelationships between different business lines as they relate to finance, tax, operations, human resources, marketing, production, management, and the legal environment.

Chapter Objectives Explain the protection provided by the government Explain the methods used by the government to

regulate our economy. Describe how government assists business. Recognize the role of government in producing

goods and services and hiring workers. Explain the two ways government raises money.

Our Government—Federal, State and Local p. 145

Interstate commerceThe Constitution gives the federal

government the power to regulate foreign and interstate trade.

United States Constitution (Article I, Section 8, Clause 3). The United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes".

Intrastate commerce.State governments regulate

commerce within their borders.

Our Government—Federal, State and Local p. 145

We the People of the United States, in Order to form a more perfect Union, establish Justice, (Courts) insure domestic Tranquility, (Police) provide for the common defence, (Military promote the general Welfare, (Commerce) and secure the Blessings of Liberty (Wealth) to

ourselves and our Posterity, do ordain and establish this Constitution for the

United States of America.

Government protects rights of citizens.p. 146

Contract An agreement to exchange goods or services for

something of value. Contracts are valid and enforceable contracts that have the following.

See fig 11-1 p. 146

Agreement—offer and acceptance Competent Parties—parties must be mentally competent Consideration—Something of value must be exchanged. Legality—Must be for a good or service that is legal.

Intellectual property rights. Patent—Exclusive right to use invention for 17 years Copyright—protects creative works if authors, artists and composers. Trademarks—word, letter or symbol associated with an enterprise.

Government Regulates Businesses. p. 148

Public Utilities. Provides public service that is vital to all people,

therefore government regulates. Will set rates if company is a monopoly.

Unfair business practices. Government attempts to promote fair

competition. Antitrust laws prohibit certain types of

monopolies

Government assists businesses. p. 149

Federal Small Business Administration—Loans, planning

etc… Department of Commerce—regulatory Department of Labor--Labor practices.

State Department of Business Regulation

Secretary of State Economic Development Council

Local Zoning Board

Government purchases products and services p. 150

Contracts to local vendors to supply services. Materials Manpower

Government hires workers. p. 150.

Government provides services: National Defense Police Social Services Parks and Recreation People are hired to fill these jobs and more.

Government raises money. p. 150.

Taxes. Income Taxes.

Paid through payroll withholding or quarterly payment.

Property Taxes Paid to local municipality by property owners.

Sales Tax Paid through transactions in commerce

Borrowing. Government Bonds.

Backed by the full faith and credit, specified or implied. Investors purchase bonds, government gets cash,

promises to pay back with interest.

Assignments

Do Now Calculate business

data p.154 #29 Calculate business

data p.154 #32 Read example and calculate

answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers.

Workshop Discussion Communicate

Business Concepts questions 12-16 p.152.

Discuss article with your group and write a brief answer to both questions

Homework

Define Key Terms Develop your Business Language p. 153.

Answer Review your reading questions 1-11 p.152.

Study for test.